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GST on foreign income -- what is taxable value ?

13 June 2021

If i receive foreign income in usd -- say 10000 usd this month -- what is gst taxable value ? Buyer will be sending 10k usd. I will be receiving 9500 usd. , after paypal transfer fees of 500 usd .

1. So, on the invoice, should i be including inr amount ? Note that only after receipt, i will get to know the inr value -- after applying forex rate,

2. what is gst taxable value ? 10k usd or 9500 usd ?

Thanks sir :)

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15 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 13 June 2021

Yes include inr and tax paid on gross.

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Christine Diaz (132 Points)
Replied 13 June 2021

Originally posted by : CA Altamush Zafar
	Yes include inr and tax paid on gross.

Thanks sir :)

1. I can indicate inr value sir. But how about inr value after deducting paypal transfer fees. How can i include that in invoice ? I can only know the transfer fee after receipt of payment ,

2. I will be filing LUT , and going for zero rated GST. So, should i include gst rate and gst amount on the invoice.

3. Should invoice include the terms " supply for export under LUT without payment of igst " ?

Thanks Alttamush sir :)

Attached File : 3399207 20210613165026 1 receipt.xlsx downloaded: 106 times

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 13 June 2021

1) Invoice on gross amount without paypal

2)If lut then no need to mention gst

3)Yes you will have to mention.

It is suggested that since you are starting a new business with export of services you engage a professional. You will need one.

Christine Diaz (132 Points)
Replied 13 June 2021

Originally posted by : CA Altamush Zafar
	1) Invoice on gross amount without paypal 2)If lut then no need to mention gst 3)Yes you will have to mention. It is suggested that since you are starting a new business with export of services you engage a professional. You will need one.

Thanks sir :) I have a professional. She gets exhausted answering all my beginner qs. So i get some help from this awesome forum and all the awesome CAs here :) She is great, too .

1. So, i guess receipt should contain paypal transfer fees. And also the net, after that fees.

2. So , while computing gross profit, will paypal transfer fees will be considered expense ?

Thanks sir :)

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 13 June 2021

Yes it will be an expense.

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Christine Diaz (132 Points)
Replied 13 June 2021

Originally posted by : CA Altamush Zafar
	Yes it will be an expense.

Thanks sir :)

Is electronic signature mandatory in gst invoice ?

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 13 June 2021

Signature is mandatory either manual or digital.

If provisions of Information technology act is followed then signature is exempt.

Christine Diaz (132 Points)
Replied 13 June 2021

Originally posted by : CA Altamush Zafar
	Signature is mandatory either manual or digital. If provisions of Information technology act is followed then signature is exempt.

Thanks sir :) In excel, can i just import my signature photo, and insert it into excel doc ?